Erdogan, Putin Discuss Establishment of Power Plants, Gas Hub in Türkiye During BRICS Summit

Putin welcomes Erdogan before their meeting on the sidelines of the BRICS summit in Kazan, southern Russia, on Wednesday (Turkish media).
Putin welcomes Erdogan before their meeting on the sidelines of the BRICS summit in Kazan, southern Russia, on Wednesday (Turkish media).
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Erdogan, Putin Discuss Establishment of Power Plants, Gas Hub in Türkiye During BRICS Summit

Putin welcomes Erdogan before their meeting on the sidelines of the BRICS summit in Kazan, southern Russia, on Wednesday (Turkish media).
Putin welcomes Erdogan before their meeting on the sidelines of the BRICS summit in Kazan, southern Russia, on Wednesday (Turkish media).

Türkiye and Russia are moving towards expanding cooperation in the field of nuclear power plants and implementing an agreement to establish a hub for Russian natural gas in western Türkiye.
Russian Deputy President Yuri Ushakov stated that Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan will discuss the proposed gas hub project during their meeting at the BRICS summit in Kazan, southern Russia.
According to a Russian media report on Wednesday, which cited an unnamed diplomatic source, the construction of new power plants and the gas hub in Türkiye will be part of the discussions between Putin and Erdogan.
Currently, Russia’s Rosatom is responsible for building Türkiye’s first nuclear power plant in Akkuyu, located in the southern province of Mersin. The first of its four reactors is expected to be operational by the end of this year.
Türkiye is also planning two additional nuclear power plants in Sinop on the Black Sea coast and in Thrace (western Türkiye), but it has yet to decide which company will undertake the projects. Bids have been made by Chinese and Japanese companies, as well as Russia’s Rosatom.
On Oct. 12, 2022, during the Russian Energy Week forum, Putin proposed creating a Russian gas hub in Türkiye, which would become the largest supplier of gas to Europe. The Turkish president welcomed this suggestion and directed the country’s Ministry of Energy and Natural Resources to start planning the hub the following day.
However, the proposal has been met with negative reactions from Europe, as many European countries are seeking to reduce their dependency on Russian energy resources.
Before the outbreak of the Russia-Ukraine war on Feb. 24, 2022, Russia provided approximately 40% of Europe’s gas supplies. However, those were reduced due to what Russia described as technical problems caused by Western sanctions. European governments accused Russia of using energy as a political weapon.
Experts have noted that establishing a Russian gas hub in Türkiye would require significant investments, potentially beyond the financial capacity of both countries, whose economies are currently in decline. The project could take years to complete, and new pipelines would need to be built to transport gas from Thrace in western Türkiye to Bulgaria and then to Europe.
This plan faces competition from Greece, which launched a new gas pipeline with Bulgaria in July 2022 to supply American liquefied natural gas (LNG).
Additionally, Türkiye and Bulgaria signed an agreement in Jan. 2023 under which Bulgaria will import approximately 1.5 billion cubic meters of gas annually for 13 years from Turkish export facilities, reducing the need for a new pipeline between the two countries.

 

 



US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
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US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo

The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
The move, which wields the department's most powerful sanctions tool, effectively kicks Gazprombank out of the US banking system, bans its trade with Americans and freezes its US assets, Reuters reported.
Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom. Since Russia's invasion in February 2022, Ukraine has been urging the US to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe.
The fresh sanctions come days after the Biden administration allowed Kyiv to use US ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk."
"This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine."
Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
Along with the sanctions, Treasury also issued two new general licenses authorizing US entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank.
Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war.
The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said.
COLLATERAL IMPACT
While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said.
"I think that the current administration is trying to put as much pressure and add as many sanctions as possible prior to January 20th to make it harder for the next administration to unwind," said the lawyer, Douglas Jacobson.
Officials in Slovakia and Hungary said they were studying the impacts of the new US sanctions.
Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, Jacobson said.
After Russia's invasion in 2022, the Treasury placed debt and equity restrictions on 13 Russian firms, including Gazprombank, Sberbank and the Russian Agricultural Bank.
The US Treasury has also worked to provide Ukraine with funds from windfall proceeds of frozen Russian assets.